Deep Rock doctrine

Definition - Noun
[from Deep Rock, a debtor corporation found to have been used for fraudulent transfers to its parent corporation in the Supreme Court case Taylor v. Standard Gas and Electric Co. (Deep Rock), 306 U.S. 307(1939)]
: a doctrine holding that the claim of a stockholder and esp. a stockholder with controlling interest who makes a loan to his or her own corporation will be subordinated to the claims of outside creditors if the corporation is deemed undercapitalized



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Based on Merriam-Webster's Dictionary of Law ©2001.
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collateral negligence

negligence on the part of an independent contractor that is not connected with a manner of working or risk ordinarily associated with particular work and for which the employer of the contractor is not liable


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